This Week in Pricing > 9/2/17

pricingnews-WeeklyThis Week in Pricing is a recap of the week’s best pricing focused news, strategy expert and technology leader’s thought leadership, industry news and events, and resources for pricing professionals.

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Strategic Pricing Solutions

Strategic Pricing Solutions, LLC (SPS) is a management consulting firm helping clients with pricing strategies, data analytics, and pricing processes. SPS was formed by Scott Francis in 2005 with a vision of enabling B2B clients to build sustainable strategic pricing capability to significantly improve their profitability. By providing flexibility in how we serve our customers, SPS consulting enables clients to build sustainable strategic pricing capability and continuous improvement in profitability through better pricing decisions.

Click a link below to learn more…

 


 

Top Headlines

Amazon Cuts Whole Foods Prices as Much as 43% on First Day | Bloomberg

Amazon Cuts Whole Foods Prices as Much as 43% on First Day | Bloomberg

“Price was the largest barrier to Whole Foods’ customers,” said Mark Baum, a senior vice president at the Food Marketing Institute, an industry group. “Amazon has demonstrated that it is willing to invest to dominate the categories that it decides to compete in. Food retailers of all sizes need to look really hard at their […]

 

When given the chance to pay less, patients choose cheaper prescription drugs | Berkeley News

When given the chance to pay less, patients choose cheaper prescription drugs | Berkeley News

As prescription drug spending continues to rise in the United States, along with prices for new and well-established drugs, insurers, employers and patients are searching for ways to cut costs. A new study led by UC Berkeley researchers found that a policy called reference pricing is effective at encouraging patients to spend significantly less on […]

 

American, Delta pinched by rise of cheap airfares to Europe | TheSpec.com

American, Delta pinched by rise of cheap airfares to Europe | TheSpec.com

While that’s great news for bargain-hunting travelers, it’s a blow for traditional airlines. The increased seat supply is dragging down fares in a lucrative overseas market just as a rebound in domestic pricing is starting to look shaky. American and United rattled investors last month when they forecast tepid revenue growth and signalled that an […]

 

What Is Value Range Pricing in Real Estate? | realtor.com®

What Is Value Range Pricing in Real Estate? | realtor.com®

What is value range pricing in real estate? It’s when home sellers, rather than listing their home at a certain price, put up a range instead. For instance, rather than listing a home for $500,000, the ad will indicate that the sellers are looking for offers in the vicinity of $475,000 to $525,000. Also known as variable range pricing, or VRP, this type […]

 

When Oil, Gas Portfolio Optimization Goes Too Far | Exploration & Production

When Oil, Gas Portfolio Optimization Goes Too Far | Exploration & Production

A key expected strategy for surviving in a “lower-for-longer” price environment is portfolio optimization, shedding assets that do not fit a specific geographic strength, technical capability or risk profile. During the recent downturn, many oil companies migrated from cost reduction to portfolio rationalization. Several companies even optimized to the point of a single-basin focus, consolidating […]

 

Whole Foods Prices Will Drop Significantly After Amazon Deal | Eater

Whole Foods is about to lose its “Whole Paycheck” image thanks to one of this year’s biggest business deals: On June 16, Amazon announced it was buying Whole Foods for $13.7 billion. This week, Whole Foods shareholders voted to approve Amazon’s purchase price, the Federal Trade Commission confirmed it won’t block the deal, and the […]

 

True price of an Uber ride in question as investors assess firm’s value | Reuters

True price of an Uber ride in question as investors assess firm’s value | Reuters

RECKONING SOON? Uber’s losses stem from its drive to win global market share at almost any cost. That strategy was built on the assumption that Uber could achieve a dominant position in many big cities quickly and eventually raise prices. Kalanick himself said low fares were temporary. But eight years in, the strategy is now […]

 

Did Samsung Overprice The Note 8? | Forbes

Did Samsung Overprice The Note 8? | Forbes

Samsung Electronics unveiled its new flagship phablet, the Galaxy Note 8, yesterday at an event held in New York. While the device looks impressive, with high-end specifications such as a 6.3-inch curved screen and dual cameras, it sports the highest-ever price for a Samsung flagship, starting at $930. The pricing strategy might appear opportunistic, as […]

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Will consumers pay $1,000 (or more) for the next iPhone? | Fox News

Will consumers pay $1,000 (or more) for the next iPhone? | Fox News

Other media outlets, including The Wall Street Journal, have indicated the 10th anniversary edition of the iPhone could cost as much as $1,400, putting it in the stratosphere of high-end smartphones. With this level of pricing, analysts have wondered whether it might be too much for most people. “I’m still a bit skeptical the phone […]

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More Headlines

Biogen & 6 Other Multiple Sclerosis Drug Stocks in Focus: Here’s Why | Nasdaq.com

Biogen & 6 Other Multiple Sclerosis Drug Stocks in Focus: Here’s Why | Nasdaq.com

Drug pricing is back in the news with an investigation being launched by Rep. Elijah E. Cummings and Rep. Peter Welch into the skyrocketing prices of multiple sclerosis (“MS”) drugs. MS, an unpredictable and often disabling disease of the central nervous system (“CNS”), interrupts the flow of information within the brain and between the brain […]

 

Downtown Macon parking spots could vary in cost | 13wmaz.com

Downtown Macon parking spots could vary in cost | 13wmaz.com

“Dynamic pricing to make sure that the system doesn’t price or push anyone out so that people can self-select their own interest,” says Morrison. Morrison says they are also going to offer paid parking permits for people who live or spend a lot of time downtown. “We’ve heard from residents time and time again that […]

 

What is Dairy Revenue Protection? | FB.org

What is Dairy Revenue Protection? | FB.org

Dairy Revenue Protection (Dairy-RP) is a concept plan of insurance, developed by the American Farm Bureau Federation, American Farm Bureau Insurance Services and other collaborators which would allow dairy farmers to purchase risk management protection against declines in quarterly revenue from milk sales, i.e. unexpected declines in milk prices, unexpected declines in milk production, or […]

 

Inside Backstage, Macy’s off-price Hail Mary | Retail Dive

Inside Backstage, Macy’s off-price Hail Mary | Retail Dive

For frequent off-price shoppers, there’s nothing alien at all about the Backstage concept. The prices, layouts and assortment doesn’t differ that much from existing players. And that’s likely no accident. Off-price sellers have been on a hot streak for years as department stores contend with weak mall traffic, the expansion of e-commerce, changes in consumer […]

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Cab operators cash in on commuters’ misery | The Tribune India

Cab operators cash in on commuters’ misery | The Tribune India

To add to the misery of office-goers, ‘surge’ on taxi aggregators such as Ola and Uber had risen exponentially by a multiple of 3. For a distance of about 10 km, the cabs were charging an exorbitant rate of Rs 350-Rs 370 for the low-cost UberGo and Ola Mini categories in the morning. The fares […]

 

iflix Launches Direct Carrier Billing with Fortumo | Business Wire

iflix Launches Direct Carrier Billing with Fortumo | Business Wire

iflix has leveraged Fortumo’s Payments API to expand its payment reach across its Asian markets, allowing iflix to roll out direct carrier billing for multiple mobile operators at once utilising Fortumo’s pre-existing integrations with the carriers. iflix can simultaneously use advanced features of direct carrier billing such as free trials dynamic pricing with a fully […]

 

How Cars Help Fuel Municipal Budgets | Government Technology

How Cars Help Fuel Municipal Budgets | Government Technology

Tech companies have found several ways to help local governments in this space. Many companies focused on digital payments provide tools for governments to accept parking ticket payments and other fees online, leading to faster payments. Others have created smart parking meters and companion phone apps that allow people to pay for parking more easily […]

 

Cincinnati Parking Meters Rates Go Up Next Month | WVXU

Cincinnati Parking Meters Rates Go Up Next Month | WVXU

Meter rates will increase from 50 cents to 75 cents per hour in the following neighborhood commercial districts: Clifton, Corryville, The Heights, CUF, East Walnut Hills, Hyde Park, Mt. Lookout, Northside, Oakley, College Hill, O’Bryonville, Pleasant Ridge and Walnut Hills. Rates will remain at 50 cents an hour in the following neighborhoods: Avondale, Camp Washington, […]

 

Orica warns rising gas prices hitting profits and jobs | Herald Sun

Orica warns rising gas prices hitting profits and jobs | Herald Sun

HOUSEHOLDS PAYING INFLATED ELECTRICITY AND GAS PRICES Joining the ranks of manufacturing industry leaders to call for immediate action on surging prices, Mt Calderon on Thursday said the nation’s gas market was “at a crisis point”. Orica was in the “bizarre” situation where it could make more money converting imported ammonia into gas to sell […]

 

Rent-A-Center (RCII) Strategic Plans Bode Well for the Stock | Zacks.com

Rent-A-Center (RCII) Strategic Plans Bode Well for the Stock | Zacks.com

Management has undertaken initiatives to strengthen the performance of its Core U.S. segment. The company expects to reap benefits from its Flexible Labor and Sourcing & Distribution endeavors. Moreover, management has been gradually making a shift in its pricing strategy at the Core U.S. unit – from a cost-based pricing technique to a data-driven, market-responsive […]

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Hormel Foods Announces Third Quarter Results And Continued Progress Towards Key Strategic | Hormel Foods Corporation

Hormel Foods Announces Third Quarter Results And Continued Progress Towards Key Strategic | Hormel Foods Corporation

“We generated record pre-tax earnings this quarter even as we faced record-high input costs for two of our primary raw materials, pork bellies and beef trim,” Snee said. “Nevertheless the results did not meet our expectations. Our team is working to mitigate the effects of volatile commodity markets through increased pricing, strategic promotional activity, and […]

 

Express May Be Getting Back on Track | Bloomberg Gadfly

Express May Be Getting Back on Track | Bloomberg Gadfly

For several quarters, Express had been bemoaning that margins were being squeezed when it had to resort to promotions or markdowns to make sales. But this was a concerning excuse, because shoppers had been demanding a steady stream of these discounts for years now. If Express hadn’t reconsidered its pricing strategy accordingly, that suggested the […]

 

Amazon’s grocery price cuts pressure rivals | The Ledger

Amazon’s grocery price cuts pressure rivals | The Ledger

A price war has raged in U.S. supermarket aisles for well over a year, bloodying retailers big and small. On Monday, Amazon.com plans to toss a smart bomb into the fray. The online giant’s move to slash prices on everything from organic baby kale to fair-trade bananas on the same day its $13.7 billion acquisition […]

 

Thousands were fleeing Harvey. This Texas hotel started nearly tripling room prices | Fort Worth Star-Telegram

Thousands were fleeing Harvey. This Texas hotel started nearly tripling room prices | Fort Worth Star-Telegram

“Because people are calling to take rooms,” the clerk said, according to KXAN, adding that “we need to (inaudible) the price. I don’t have any control on the price.” The next morning, the TV crew again confronted a hotel clerk. They got a clerk to confirm that room rates were normally around $119 a night—but […]

 

BlackBerry KEYone will be available in Chile starting in September | CrackBerry.com

BlackBerry KEYone will be available in Chile starting in September | CrackBerry.com

Pricing for the BlackBerry KEYone will depend on your chosen plan but with your plan starting at $30.000, you can buy it for $359.990. Customers will also have the outright purchase option from Falabella at $499.990. Read complete article here: BlackBerry KEYone will be available in Chile starting in September | CrackBerry.com.

 

OPEC’s all-options strategy not enough to lift the price of oil | UPI.com

OPEC’s all-options strategy not enough to lift the price of oil | UPI.com

Aug. 24 (UPI) — Oil prices fell flat early Thursday as questions about OPEC’s efforts to balance the market overshadowed possible U.S. offshore production issues. Crude oil prices rallied Wednesday after the U.S. Energy Information Administration issued a report indicating further drawdowns in U.S. crude oil and gasoline inventories, a sign the market in the […]

 

AMD’s MCM Design Cost Savings Allow Aggressive Pricing | eTeknix

AMD’s MCM Design Cost Savings Allow Aggressive Pricing | eTeknix

According to AMD, the move to a MCM design is critical to their pricing strategy. By using a common silicon design, AMD is able to reap greater economies of scale. The top 5%  percentile get used in Threadripper with even better chips used for EPYC. Regular Ryzen gets lower end chips and defective ones are […]

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5 Things To Know Before Taking A Loan Online | Value Walk

5 Things To Know Before Taking A Loan Online | Value Walk

2. Tailored products Another way alternative lenders are setting themselves apart is by offering unique financial products. You can tailor the specifics of the loan, such as the timeline for payback and the purpose of the loan. Businesses can use everything from inventory to invoices without the need for a personal guarantee. This sort of […]

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Data Sheet—Amazon’s Whole Foods Pricing Strategy Explained | Fortune.com

Data Sheet—Amazon’s Whole Foods Pricing Strategy Explained | Fortune.com

Ready, set, go public. Spotify signed a new deal with the third major record label, Warner Music, completing the triple play it needs before going public. Alongside earlier agreements with Universal Music Group and Sony Music Entertainment, the deal should help the streaming giant attain profitability sooner. How much is that phone in the window? […]

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Grainger’s Pricing Initiative, pt 1: A ‘Suboptimal’ Solution? | Modern Distribution Management

Grainger’s Pricing Initiative, pt 1: A ‘Suboptimal’ Solution? | Modern Distribution Management

As of Aug. 1, W.W. Grainger Inc.’s new web pricing strategy was to be effective for all 1.5 million SKUs on its website. The pricing strategy was launched to reverse unfavorable market share trends Grainger experienced in certain market segments in recent years. Part 1 of this two-part series looks at how the pricing initiative […]

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VMworld: Partners Await Pricing, Availability Details For VMware Cloud On AWS – Page: 1 | CRN

VMworld: Partners Await Pricing, Availability Details For VMware Cloud On AWS – Page: 1 | CRN

Solution providers attending next week’s VMworld conference in Las Vegas will be closely looking at what VMware’s strategic relationship with Amazon Web Services means for their businesses. VMware is expected to provide additional details on VMware Cloud on AWS – including pricing, availability and how the sales process for the offering will work in the channel. The new […]

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New app solves local dining debate with luck | Newark Post

New app solves local dining debate with luck | Newark Post

Cherian Thomas could notice a trend on the horizon: dynamic pricing was helping some of the internet age’s biggest companies swallow up market share. But he was troubled when some of those best practices weren’t being applied to one of the most common choices that customers make: where to eat. “When you look at Priceline, […]

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Amazon’s grocery price cuts pressure rivals | The Ledger

Amazon’s grocery price cuts pressure rivals | The Ledger

A price war has raged in U.S. supermarket aisles for well over a year, bloodying retailers big and small. On Monday, Amazon.com plans to toss a smart bomb into the fray. The online giant’s move to slash prices on everything from organic baby kale to fair-trade bananas on the same day its $13.7 billion acquisition […]

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How is the draft pharma policy revamping drug price regulation? | Business Standard News

How is the draft pharma policy revamping drug price regulation? | Business Standard News

The draft pharmaceutical policy has been recently circulated by the Department of Pharmaceuticals (DOP) to a select group of organisations. Its concerns are spread across at least three ministries – DOP, health and commerce, the last for issues related to patents. The Wire earlier reported on the range of issues it aims to cover including […]

Do You Know Petrol Prices Are The Highest In Last 3 Years? | ChandigarhX

Do You Know Petrol Prices Are The Highest In Last 3 Years? | ChandigarhX

The nation has been so gripped to Baba Gurmeet Ram Rahim Singh’s conviction and sentencing for past many days that we didn’t even notice where oil prices in the country are going. Petrol prices is hovering at the highest rate in last 3 years, and that of diesel, the highest in last 4 months. Since July, […]

Amazon and Whole Foods – what happens once the honeymoon is over? | diginomica

Amazon and Whole Foods – what happens once the honeymoon is over? | diginomica

For Amazon  to successfully pull off its Whole Foods acquisition, it could end up using the power of digital technology to personalize the in-store customer experience like no other retailer can today. Indeed, since closing the $13.7 billion purchase earlier this week, Amazon has already introduced a number of important changes to the ailing upmarket […]

Russian wheat exports ‘too slow’ to meet lofty expectations | Agrimoney.com

Russian wheat exports ‘too slow’ to meet lofty expectations | Agrimoney.com

Wheat price impact Traders at major commodities house, with substantial interests in Russia, said that “if it is now going to be standard practice for Russia to produce in excess of 75m tonnes of wheat [a year] then they will need to invest in infrastructure in order to take their product to the market”. This […]

What Does It Take To See Gentrification Before It Happens? | NPR

What Does It Take To See Gentrification Before It Happens? | NPR

Big data is a shorthand term for the insane amounts of information being generated by human beings in our digital world. From cellphones to credit card transactions to social media, we are all leaving digital contrails of almost all of our activity in the world. Learning how to harvest and analyze these digital traces en […]

Healthcare spending, price growth slows in 2017 but job growth spikes | Healthcare Finance News

Healthcare spending, price growth slows in 2017 but job growth spikes | Healthcare Finance News

Healthcare spending growth slowed in 2016, and the trend appears to be continuing, according to the August 2017 Altarum Institute Center Health Sector Trend report. According to the report, spending grew by only 4.6 percent in 2016 and estimates based on new data have the downward trend continuing with growth for the first half of […]

Farmers Insurance asks court to block state review of auto rates and a possible refund order | LA Times

Farmers Insurance asks court to block state review of auto rates and a possible refund order | LA Times

The roots of the Farmers case are quite different, but ultimately involve the issue of whether the commissioner can order a retroactive rate cut or otherwise tinker with already approved rates. The case started with a 2015 lawsuit brought by Farmers customers who alleged that the company had been illegally charging some customers more than […]

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Featured Content and Events

Book: 8 Keys to Price Optimization

Book: 8 Keys to Price Optimization

Summary: Price optimization enables companies to move beyond cost-plus pricing and determine the range of prices that could be charged for a variety of customers and products. Price optimization can increase current operating income by 1 to 4% of sales, which in many cases will translate into a 20 to 50% increase in operating income. The most sophisticated […]

 

Conference: 28th Annual Fall Pricing Workshops & Conference | PPS

Conference: 28th Annual Fall Pricing Workshops & Conference | PPS

Date: October 24-27, 2017

Location: Hilton San Diego Bayfront in San Diego, California

Hear from our President, Kevin Mitchell, give insight on the conferences we offer.  Please make plans to join us and well over 500 of your peers for the best event anywhere as we discuss Data, Change Management and the Profit Landscape. Don’t miss out on the Early Bird Discount (Buy 2 Get 1 Free). It expires September 15th!

CONFERENCE HIGHLIGHTS

  • 12 Certified Pricing Professional Workshops
  • 4 Breakout Tracks
  • Over 40 Speakers
  • 2 Full Conference Days
  • Over 100 Hours of Networking

 

DigitalPricingSummit_300x250

Conference: Digital Pricing Summit | IQPC

Pricing transformation through digital disruption.

DIGITAL TRANSFORMATION AND E-COMMERCE | DIGITAL PRICING STRATEGIES FOR B2C | E-COMMERCE PRICING IN THE B2B CONTEXT | VALUE CREATION AND CHANNEL MANAGEMENT | DIGITAL SUBSCRIPTIONS AND PAYMENTS | REVENUE MANAGEMENT & COMMERCIAL EXCELLENCE

  • Understand how digitalisation and online services are changing the future of commerce
  • Develop superior pricing strategies in the highly competitive B2C space
  • Explore how digital transformation and ecommerce are interdependent in the B2B context
  • Value creation, communication, managing partners and channel conflict
  • Leverage margin enhancement in digital subscriptions and leveraging digital payment platforms
  • Identify revenue management and commercial strategies for pricing excellence
  • Learn about setting up ecommerce platforms, subscriptions, data analytics and applications for pricing excellence.


The following is a daily-dose of pricing cartoons and quotes, enjoy…

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“You know you’re priced right when your customers complain—but buy anyway.”

– John Harrison

 


 

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